According to media reports, conglomerate Tata Group is considering investing an additional USD 1 billion in its super app venture, Tata Neu. The funding will be given to Tata Digital, the conglomerate’s digital arm.
Tata Neu, which was launched in April last year, offers various services such as hotel and flight reservations, grocery and electronics and pharmaceuticals in one app. However, the app faced challenges and poor user experience during its launch. It has not gained significant market traction since then.
Tata Digital (parent company of Tata New) has acquired several startups, including BigBasket and 1mg to add more offerings to Tata Neu from various Tata-owned brands.
Competition in the super app market is increasing, with Adani and Reliance also entering the space. Reliance already has a well-established super app called MyJio.
The digital offerings from these conglomerates come at a time when more Indians are joining the digital sphere due to increased smartphone and internet usage. The consumer internet market in India is expected to grow to USD 1.6 trillion by 2025.
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